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The Disruption of old business models – Need to Improve the Candidate Experience by making sense of the fragmented recruitment technology landscape

Top  Needs – Candidates & Hiring companies

The research indicated that the top needs of candidates were:
• Understanding of niche sectors
• Specialist knowledge
• Prompt feedback
• Regular updates
• Regular opportunities rather than one off jobs
The top needs of hiring companies were:
• Introduction to unique candidates
• Established relationships with candidates
• Specialist market knowledge
• Impartial hiring advice and guidance

moballCandidates expect consultants to be truly that, a consultant – providing strategic advice, being up-to-date on legislation and understand their industry.

Candidates want consultants who truly understand their motivations  and what they are looking for. With the advent of social media a consultant can gain this information before even speaking to them.

It is natural that more active candidates will take a greater proportion of a consultant’s time, however Lever have highlighted in a global research report that only 25% of candidates are actively looking for a new job.
With a large proportion of candidates becoming passive, there is a real need to communicate with them regularly, so that a consultant is fresh in a candidate’s mind when they become active.

To enhance a candidate experience, a consultant should focus on more than just the professional aspects.

What is your candidates’ family background?      What do they like to read?    What are their hobbies?

By building up a holistic picture you can add more value to both your candidate and client by accurately matching them to an opportunity.

Fast Progress  in Online recruitment 

  • We have aggregators changing business models and becoming jobboards (Indeed.com now claim to be world’s biggest jobboard)
  • Jobboards turning into aggregators (monster) and professional social networks (LinkedIn / Facebook / Twitter) gaining ground, all impact on market dynamics.
  • In the UK alone there are around 5000 job boards, hundreds of social media channels (and an equal number of Social Media experts), hundreds of fixed price solutions, dozens of aggregators, hundreds of databases, tons of data-mining services, psychometric tools, behavioural tools, Social profiling tools and video profiling, and much more.
  • Sites that enable people to rule themselves in or out seem to be the way forward, (like with Hackajob where candidates complete technical challenges, and ratings-based sites like Glassdoor) and can have a big impact on the decisions people make whilst looking for a role, by informing them on the questions they really want to ask.
  • Various channels to the people market are opening up all the time. There are the standard job boards and LinkedIn, but there are also new sites popping up, predominantly in the States/Silicon Valley where the war for talent is especially heightened, which cut out the recruiter altogether (e.g. Crew, Anthology).

We are encountering the possibilities afforded by the advancements in digital technologies in recruitment. The industry will continue to grow and companies will feel even more empowered to find great talent. Employees will know that their skills and qualifications are being appropriately matched to corresponding employment opportunities.

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The last years have seen significant innovation in the recruitment space, as well as companies and individuals being innovative.

The truth is that not all innovation brings the improvements they promise. Take for example, the fixed price multi-posting solutions that have emerged in their hundreds in the last few years. On the surface and to the untrained eye, they all look to provide comparable services and solutions. However, when you look at their performance, there is a gulf of difference between the outcomes of the majority that struggle to fill more than 25% of the jobs advertised and the minority that successfully fulfil more than 50% of the campaigns posted on them.

Many of these systems have integrated 3rd party tools and so you are potentially looking at several recruitment solutions in one. Take parsing for example, which is often advertised as a feature on many of these sites. Now for those of you who are unaware of what parsing is, it is basically a software solution that segments data and populates it into a specific fields within a database.
Parsing software can also be used on CV’s and job adverts to identify matching key words and phrases to generate a score that places the applicants into order of suitability. However, the range of parsing solutions out there varies dramatically from market leaders, like Burning Glass, to inferior products that simply don’t work.
In the UK alone there are around 5000 job boards, hundreds of social media channels (and an equal number of Social Media experts), hundreds of fixed price solutions, dozens of aggregators, hundreds of databases, tons of data-mining services, psychometric tools, behavioural tools, Social profiling tools and video profiling, and much more.

Disruption of old business models          

Uber is a great example of an organisation that clearly understands that holistic and total change of the economic model has the potential to achieve a massive and game-changing outcome with huge benefits for all participants. By inverting the taxi business model from large companies controlling the booking model to the drivers being liberated by technology themselves, they made a huge disruption within the transportation industry. 

This is in contrast to the marginal disruption in recruitment, which has focused on taking parts of the traditional process and marginally improving them. While small updates to transactional elements of recruiting were viewed as a revolutionary move ahead, they have failed to deliver significant benefits. For example, shifting recruiter CRM tools to cloud servers saw small cost reductions and minor efficiency improvements.

The trend to mobilise technologies and applications in the recruitment space, have raised individuals’ expectations and radically changed the way in which people work and interact with each other. With people spending an increasing proportion of their time browsing the internet on mobile devices it is vital that all the stakeholders in recruitment: companies, job boards, social networks, recruiters  should  optimise their mobile experience.

On the one hand it’s a huge risk for recruiters, but an alternative viewpoint is that unless that end company gives brilliant customer service to every candidate who applies, it could do them reputational damage in the long run.”

Job boards were another attempt of disruption in recruitment and they did change the process of hiring, but fell short of true change. Job boards rose to prominence as they were a cost-effective way to reach candidates who are actively looking for a new job. The problem with this approach is that the best candidates are more often than not already employed and hence not looking on job boards. The burden of effort in the process lies with the employer too.

By contrast, recruiters do most of the work and have several assets no one else does:  candidate data, screening techniques and the ability to persuade a passive -already employed- candidate to consider a new job prospect.

The cold-calling of the sales-focused business model gives way to the consultative way of selling.

Social recruitment, and LinkedIn in particular, is another example of a step in the evolution of recruitment that again promised a lot, but did not bring true change. You’re also left with the age-old problem of how to contact and engage a passive candidate and encourage them to consider leaving to work for you. It’s a specialised sell, and one that good recruiters spend careers refining.

Consolidation and Disruption

Market consolidation, such as Capita’s inspired acquisition of 33 and Work Communications, will gather pace.

Innovative systems and plug-ins such as Jobvite will enhance ineffective recruitment processes as well as create game-changing standalone solutions.

Job Boards will have to reshuffle their model. Unsettled by a lack of growth and diminishing stakeholder returns, as well as the aggregator challenge of Indeed, Job Boards will look to become employer branding vehicles or direct sourcing streams, as well as what they currently are: CV data warehouses.

It’s going to be a year of changing arrangements and new business model scenarios.

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